PIA Stake Sale Moves Ahead With New Incentives for Investors
The government has moved ahead with the PIA stake sale to revive the national airline. It plans to divest full ownership while ensuring fresh investment flows into the company. As a result, officials hope to strengthen operations and restore confidence.
The plan allows bidders greater control and financial flexibility. Therefore, authorities expect stronger participation during the bidding process scheduled for December 23.
Flexible Terms for Investors
The government will sell 75% of shares through bidding next week. However, the winning bidder may buy the remaining 25% within one month. Officials will charge a 12% premium for delayed payment after one year.
Only 7.5% of the bid amount will go to the government in cash. In addition, bidders must invest the remaining 92.5% directly into the airline. This approach focuses on long-term recovery instead of short-term revenue.
Earlier, the government planned to sell only a 60% stake. However, bidders demanded stronger control for decision-making. Therefore, authorities revised the structure and confirmed the change.
Advisor to the Prime Minister on privatisation Muhammad Ali confirmed the development. He said investors wanted clarity and operational freedom. The revised offer now meets those expectations.
Improving PIA’s Financial Outlook
The government removed Rs654 billion in debt from the airline’s balance sheet last year. Taxpayers currently service that amount through budget allocations. For this year, the airline will receive Rs34.7 billion for pensions and liabilities.
PIA now shows positive equity of Rs30 billion. In addition, authorities waived sales tax on aircraft leases and restored international routes. These steps strengthen the airline’s valuation.
Several major business groups have submitted bids. These include Lucky Cement, Fauji Fertiliser, and Air Blue. Officials believe the PIA stake sale will attract serious investors despite delayed dividend expectations.
